Atlas reviews value of Horizon projects

ATLAS Iron will book a non-cash write down of $258 million following a review of its Horizon 1 and 2 exploration project.

The emerging Pilbara iron ore miner said the move was due to accounting values attributed to the exploration assets as the value of Atlas shares increased.

The write down relates to the total of deferred Minerals Resources Rent Tax and income tax in its accounts for the six months to December 31, 2012.

Atlas said its Horizon 1 development plans and the options for further growth through its Horizon 2 assets remain unchanged.

Managing Director Ken Brinsden said the impairment charge would position the Atlas balance sheet favourably to withstand any future iron ore price volatility.

"The company is well positioned financially with $423 million cash on hand as at 31 December 2012 and undrawn financing facilities of $50 million to complete its Horizon 1 development objectives,'' Mr Brinsden said in a statement.

He said Atlas had more growth to come after starting four mines in four years.

"We are now expanding into a more robust iron ore price environment and therefore expect to be generating substantial growing cashflows as we execute on our Horizon 1 and 2 strategy,'' Mr Brinsden added.

Earlier this month Atlas said estimates for its Pilbara iron ore reserves had increased by 21 per cent to almost 500 million tonnes over seven months.

It comes a fortnight after Atlas indicated it could beat its full year sales guidance after shipping more lower-grade iron ore than expected in the December quarter.

The company will report its first half financial results on February 28.

Atlas shares were four cents, or 5.59 per cent, lower at $1.66 at the end of trade today.